The Chief Executive Officer of Starwood Hotels & Resorts Frits van Paasschen abruptly resigned on Tuesday, following months of behind-the-scenes wrangling with shareholders and after alienating board members. According to report, van Paasschen was under pressure for failing to grow the Starwood’s portfolio through franchise or management agreements as quickly as the company wanted, said Chairman Bruce Duncan, Chairman of the Board.
Adam Aron, a Starwood Director since 2006, has been named Chief Executive Officer on an interim basis while the Board conducts a search for a permanent CEO that will include both internal and external candidates. van Paasschen will continue with Starwood as a consultant to assist in the transition.
Duncan continued, “The Board believes now is the right time to take steps to accelerate Starwood’s growth, improve performance, and sharpen our focus on operational excellence. We are fortunate to have on our Board a talented and experienced business builder in Adam Aron who is prepared to step into the CEO position on an interim basis.”
